Once you decide you need to backtest you've also decided you need to open and close trades according to a set of rigid rules. That's programming, no getting past it. I'm sure there's plenty of info for Ninja but I don't use it personally.
Ninja doesn't allow option trading arithmetically from what I understand. I'm OK with coding the rules, just not the rest of it.
To code and execute strategies, you need another software that accesses IB via API, software Sierra Charts, Ninja Trader and etc. I would recommend Sierra Charts; they actually support Forex, Futures, Stocks and Options. And they are VERY reliable with easy to learn C++ based on coding facility.
Thank you for your suggestion of Sierra charts. I do remember that as being much more mainstream but would prefer to do this in C# as opposed to C++
It seems probable from your initial post: are the rules in your in your strategy transparent and reproducible by anyone with even superficial markets knowledge? Is there an input in the process that is calculated separately, e.g. a ratio value, that you needn't declare in the main script? Is the broad strategy based on a market behaviour or artefact that is well-known? You might consider hiring a programmer through a medium such as Upworker to code your rules. Depending on your answers to the above, this isn't necessarily risky as it might sound. I've had an R package written from the rules in an academic paper (I did get a NDA signed) by someone who was highly competetent in R and statistics, but was unlikely to be interested in implementing. Yes, it does require care in selecting your freelancer. Once upon a time in my own community I found someone with very good C++ (and signal-processing knowledge) to automate a fairly simple rules-based FX strat for the IB API. We ended up collaborating and in fact he improved the strategy.
Day-trading options profitably? You have better chances of building a time-machine. Just build the damn thing - travel to yesterday and you are infinitely rich - voila! Simple as that.
Not my style but I've seen seasoned day traders use options rather than the underlying stock for day trading. The option delta above .75, high open interest and volume. The underlying stock must have high volume and high beta. The option premium will move similar to the underlying stock but with a bit of a lag, and with less capital outlay. The technicals for the underlying stock apply for the option.
Lylec305, Thank you... Let's define further What is considered high? Option: delta above .75 high open interest of ? high volume of ? Underlying: high beta of ? high volume of ?
Please read my post again. Like i said, i seen other day traders use this strategy. You'll need to look elsewhere for the exact details. I watched them trade aapl call options back in 2010 before split. That's how they explained it to me, but i'm sure there's more. Check spy options just above .75 for march or april. Remember to apply all other technical indicators for signal.
Ok so since this time last month, I have figured out a few things... It appears to me that there are not too many charting packages out there that allow you to script in a high level programming language like C# and choose from a list of mainstream brokers such as Interactive Brokers. In this case, I want to use indicators on the underlying symbol to decide when to trigger a trade, but have the actual order take place on the option symbol itself. I stumbled upon a tool called Multicharts (.net version) at https://www.multicharts.com/, which appears to be one of, if not the most robust charting package in the industry. It has built-in indicators which I understand can be set to signal on on symbol and trigger actual orders on a second symbol, and can be used with multiple brokers such as interactive brokers. Are there any obvious gotchas that I am unaware of? Am I on the right track for a good long-term solution for automatic trading of equity options?